Interim Management Statement

BARING EMERGING EUROPE PLC                           

                         Interim Management Statement                          

            Review of the period from 1 April 2013 to 30 June 2013             

This Interim Management Statement for the period from 1 April 2013 to 30 June
2013 contains information which covers that period, unless otherwise stated.

INVESTMENT OBJECTIVE

The investment objective of the Company is to achieve long-term capital growth,
principally through investment in Emerging European securities.

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

The directors confirm the following material events and transactions which have
occurred since 1 April 2013.

Share Capital:

During the period from 1 April 2013 to 30 June 2013 the Company bought back
1,363,333 ordinary shares at a cost of £7.1 million. At 30 June 2013 the
Company's issued share capital consisted of 20,768,043 ordinary shares
(excluding the 3,318,207 ordinary shares held in treasury). During the period
from 1 July 2013 to 23 July 2013 a further 30,000 shares have been repurchased
for cancellation.

The directors are not aware of any other significant events or transactions up
to the date of this report which would have a material impact on the financial
position of the Company other than as described in the investment manager's
review, which follows.

Discount:

The share price discount to net asset value at 30 June 2013 was 12.7% (31 March
2013: 10.8%)

Portfolio:

Emerging Europe, as with other emerging markets around the world, was hurt by
the prospect of higher interest rates and lower commodity prices over the
course of the quarter. Although markets in the region fell, the effect of this
was mitigated somewhat by successful stock selection, resulting in performance
which was more than 3% ahead of the benchmark index over the quarter.

In terms of geographical allocation, the portfolio remains overweight the
Russian equity market relative to the benchmark index, supported by attractive
valuations. The volatile stock market environment was used to add to
technology, internet and media stocks. We participated in the capital increase
of VTB, the second largest Russian bank.

The Turkish market was affected by civil unrest and protests against the AK
Party government. While the portfolio remained underweight this market, we
believe that the current sell off provides some attractive opportunities in
selected equities. Over the period, we reduced exposure to Turkish oil refiner
Tupras and sold our position in the car importer Dogus Oto, while adding to
Turkcell, Turk Tractor and Coca Cola on price weakness.

We remain underweight in Central European markets. In particular, in Poland we
took profits in the financial sector over concerns that the Government may
nationalise the private sector pension system.

COMPANY STATISTICS

                                      30 June 2013    23 July 2013

Gross Assets                          £173.2million   £179.5million

Net Asset Value Per Ordinary Share     833.76p         865.40p

Share Price                            728.00p         757.00p

Discount to Net Asset Value             12.7%           12.5%

CUMULATIVE PERFORMANCE TO 30 JUNE 2013 (Total Return in percentage terms)

Performance Over                         3m          1 Year       3 Years

Share Price*                           -7.4%         +12.7%        +3.6%

Net asset Value*                       -5.4%         +15.9%        +6.1%

Benchmark+                             -8.6%          +8.7%       +10.1%

* Source - AIC using Morningstar

+ Source - Barings. MSCI EM Europe 10/40.

PORTFOLIO INFORMATION AT 30 June 2013

Ten largest holdings:                                               Geographical breakdown:

                                  % of Total Assets                             %

Lukoil Holdings                       10.9%                             Russia   68.0

Sberbank                              10.9%                             Turkey   15.6

Novatek                                5.4%                              Poland   8.5

Gazprom                                5.0%                             Hungary   2.3

VTB                                    4.4%                             Georgia   1.2

Magnit                                 4.3%                             Ukraine   1.0

Mobile Telesystems                     4.2%                      Czech Republic   0.5

Turkiye Halk Bankasi                   4.0%                            Slovenia   0.1

PZU                                    3.2%                                Cash   2.8

Rosneft                                3.2%                               Total 100.0



24 July 2013